At Dotch Capital, our mindset is "FIND THE PROBLEM AND THE SOLUTION" to help business owners address their financial needs at every stage of the business life cycle. Taking into account their values, financial needs, and goals, we specially design a simple package to help entrepreneurs meet thier objectives. Some of our specially designed, simple package ideas include:
Business success is tied to the talent, passion, and work ethics of key executives. Staff benefit packages can help you attract and retain quality employees and keep your company healthy and stable. We can help you fund non-qualified plans, supplemental employee retirement plans, split-dollar plans, and more.
Succession planning allows owners to exit their business when the time is right while preparing their company to be transferred to family members, key employees, an outside party, or even a charity. This must be done in a way that achieves personal financial security, maintains harmony, and delivers maximum value for the business.
Key Person Insurance
Key person life insurance offers a death benefit that indemnifies an employer for the loss of one of its most valuable assets—the key person. This assures continuity of the business for employees, customers, and creditors, and it protects against losses in sales, momentum, and even credit. It can also be used to recruit a replacement employee.
Funding Buy-Sell Agreements
A buy-sell agreement is a legally binding contract between co-owners of a business. It controls a situation where a co-owner dies or leaves the company, whether by force or by choice. A funded cross-purchase buy-sell plan uses life insurance to help ensure that the arrangement is properly funded.
Funding Deferred Compensation
Deferred compensation is a written agreement between an employer and an employee where the staff member chooses to have part of his or her pay withheld, invested, or distributed back to them at a pre-determined point in the future.
Business Owner SLIRP Strategy (BOSS)
Supplemental life insurance for retirement planning is a superb strategy for business owners. This concept involves the owner purchasing a cash accumulation, which is a permanent life insurance policy with after-tax dollars. Over time, the plan will generate cash values that can be accessed on a tax-free basis during retirement while providing asset diversification and reducing exposure to business risks.
Cash on the Balance Sheet (COTBS)
Successful businesses typically maintain significant cash reserves, which are generally subject to low-interest rates and income taxation. By repositioning some of this cash into a permanent life insurance policy, the business can see tax-deferred growth that exceeds the returns of other cash alternatives over the long term, and a tax-free death benefit that could help meet different business needs such as key person insurance and buy-sell funding.
Retirement and Legacy Arrangement (RALA)
RALA is an innovative strategy designed to address multiple wealth planning objectives without the need to gift the annual premium. If properly designed, funded, and maintained, you can retain control over the permanent life insurance policy and cash value to supplement retirement income and create an income and estate tax-free legacy for heirs.
Executive Bonus and Key Person Arrangements
Executive Bonus (IRC Section 162) is a non-qualified arrangement between an employer and select employee(s). Under an executive bonus arrangement, the employer agrees to pay a bonus each year to select employees, often in the form of premiums on personally owned life insurance policies. Executive bonus arrangements are used when a business owner wants to reward and retain key managers and employees. An executive bonus agreement clarifies the rights and obligations of the parties and formalizes the arrangement. Key Person Life Insurance is designed to protect a business from losses associated with the death of a person "key" to the company. The amount of insurance typically owned by the firm covers the cost of hiring and training a replacement for the deceased, as well as lost profits. Key Person Life Insurance can be used with any form of business when the loss of an individual would cause severe financial hardship to the company.
In business, every employee matters, and no office can be expected to run smoothly without administrative staff, managers, nurses, assistants, and others. This team is what keeps your clients happy, schedules filled, and priorities in order. Benefits make your employees want to stay with your practice, and benefits such as dental and medical insurance and retirement savings plans motivate them to stay. Together we will decide which benefits are best for your company and how they should be implemented according to your company goals.